If you’re a businessman trying to recover your debts, finding a powerful, affordable and trustworthy debt collection agency can be a daunting task. With countless collection agencies of varying size and experience out there picking the incorrect one will cost you hundreds, thousands, and quiet easily thousands of dollars both in lost collections as well as in predatory collection fees and commissions.
However, there are 3 powerful secrets to locating the best debt collection agencies that if you set to work for you could save you a lot of money as well as recover even more of your financial obligations faster… all without exposing you to definitely the usual headaches and frustrations that so frequently opt for debt collection.
So revealing are these 3 insider questions that only a fool would pick a collection agency without first asking these three questions.
In order of increasing importance, here then are definitely the 3 questions that empower you to quickly and accurately sort the diamonds from your dust.
Insider Question #1: “Would You Guarantee Variety Of My Debts?”
Most agencies will state that no collection means no commission. Don’t be fooled. This really is NO guarantee of collection but rather a transparent ploy of deception.
In reality whenever you go with these agencies you’re the main one risking everything. Regardless of whether or not they collect the debt they’ll still charge an upfront fee for pursuing the debt. So in addition you find yourself with no money recovered, there is also to pay for their lack of ability to recover your money. So you find yourself losing twice while they come forth with money in their pockets.
What you want is a guarantee the money you invest using the agency would really bear a return by means of a collected debt.
Bottom line: never deal with a collection agency that won’t guarantee collection of your debts.
Insider Question #2: “How Can You Handle Disputed Debts?”
Make no mistake.. this one’s a biggie.
In a ruthless effort to get free from pay their accounts more and more debtors falsely dispute their debt. And exactly what makes this dirty tactic so powerful would be the fact almost without exception debt collection agencies will either refuse to get anything concerning disputed debts OR they’ll charge exorbitant fees.
But seeking to sort out a dispute on your own, even whether its blatantly fraudulent, is really as financially crippling as it is emotionally infuriating. The legal costs alone can very rapidly dwarf the dimensions of the unpaid account.
Fortunately you can find a couple of collection agencies which are geared to manage disputes as your representative at no additional charge. That’s why it’s imperative that before you sign any agreement having a prospective debt collection agency you get these to verify precisely how they handle disputed debts.
Take home message: only handle debt collection agencies which have systems set up to deal with both genuine and bogus disputes without charging you extra for this. When I say, this can be a biggie.
Insider Question #3: “Would You Charge A Commission On Collection From Day 1?”
From the three insider questions to ask, this one is quite possibly the most crucial.
Granted, on the surface charging a commission on collection may not sound so bad. However, as you’re going to see charging a commission on collection from day 1 slaughters the chances of you getting back all of the money that’s rightfully yours.
In the event you lack adequate relation to trade and they are liable to pay collection costs, any money that’s collected as your representative is going to be significantly whittled through the commission on collection. On recovering your hard earned money debt collection agencies that charge commission from day one can skin anywhere between 20% to 40% right from the top. Regardless of how you see it that’s a huge price to cover to get back the amount of money that’s rightfully yours.
Alternatively, where you can legally pass on all collection costs to your debtor you might be forgiven for thinking all is sweet… it’s the debtor who gets slapped with the commission while you can keep all money owed for you.
However, what usually eventually ends up happening, stung with 20% to 40% more than what they originally owed you these debtors make up bogus lies to dispute the debt in an attempt to avoid paying it.
Net result: even though it’s your debtor who gets stung with zowgae collection costs, it’s you who ultimately misses out when you forget to recover most of your debts.
It’s for this reason that you ought to absolutely refuse to deal with any collection agency that charges a commission from day one, especially if they don’t charge a 1-off fixed fee and even more so should they don’t guarantee collection.